Occupancy changes the mortgage
Occupancy can affect eligibility, pricing, down payment, reserves, rental-income treatment and the documents required.
A second home is not simply an investment property with occasional owner visits.
Second-home considerations
Conventional guidance expects the borrower to occupy an eligible second home for part of the year and retain control over it. Location, suitability and rental arrangements may require review.
The selected program—not a marketing label—determines whether the scenario fits.
Investment-property considerations
An investment property is owned for rental or other investment purposes and is not occupied by the borrower. Conventional and non-agency programs may finance eligible transactions with different requirements.
Projected returns do not replace qualification, appraisal, insurance or property review.
State the plan accurately
Tell the lender how the property will actually be used, including personal occupancy, long-term leasing and short-term rentals. If the plan changes before closing, disclose it promptly.
Misstating occupancy can have serious lending consequences.